Examlex
The circle near the center of this structure represents a
AVC
Average Variable Cost, the total variable cost divided by the quantity produced, representing the cost of labor and materials for each unit of output.
ATC
Average Total Cost (ATC) refers to the total cost per unit of output produced, comprising both fixed and variable costs.
Variable Costs
Costs that change in proportion to the level of activity or volume of output in production.
Fixed Costs
Business expenses that remain constant regardless of the level of production or sales, such as rent or salaries.
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